- media@moneyinfocus.news
Foreign direct investment (FDI) inflows into China declined 7.3% year-on-year to CNY 249.6 billion in the first quarter of 2026, underscoring persistent caution among global investors despite pockets of resilience in technology-driven sectors.
Within the broader slowdown, capital allocation showed a marked shift toward innovation-linked activities. Investment in research and development (R&D) and design services surged 127.8% from a year earlier. Meanwhile, funding directed to the manufacturing of computers and office equipment rose 88.1%, and investment in electronic and communication equipment increased 23.8%, pointing to continued prioritization of advanced industrial capacity.
New business formation provided a counterbalance to weaker aggregate inflows. China registered 13,987 newly established foreign-invested enterprises in the first quarter, an 11% increase year-on-year, suggesting sustained long-term interest in market entry despite near-term capital moderation.
By origin, inflows from several European and Asian economies posted strong gains. Investment from Luxembourg nearly doubled, rising 96.8%, while Switzerland, France, and South Korea recorded increases of 50.4%, 42.3%, and 35.2%, respectively.
The data highlights a reconfiguration of foreign capital in China, with investors selectively increasing exposure to high-value, technology-intensive segments even as overall inflows remain under pressure.
Source: Ministry of Commerce of the People’s Republic of China
